LyondellBasell Q3 net income up slightly on higher O&P earnings

29 October 2013 11:44[Source: ICIS news]

LONDON (ICIS)--LyondellBasell’s net income for the third quarter rose slightly by 0.8% year on year to $851m (€613m) as olefins and polyolefins (O&P) earnings improved, the Netherlands-registered company said on Tuesday.

Sales during the quarter slipped $121m to $11.2bn, while group earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3.7% year on year to $1.53bn.

"This performance is sequentially down from the prior quarter due to scheduled maintenance at a US olefins and polyolefins site and fewer market-related opportunities in our European olefins and polyolefins business.

“Refining results again proved difficult, pressured by an oversupplied gasoline market, spending for RIN's and plant maintenance," he added.

In LyondellBasell’s O&P - Americas business, EBITDA increased $27m in the third quarter 2013 versus the third quarter 2012 to $827m, as results benefited from increased ethane cracking at a lower cost.

In the group’s O&P Europe, Asia and International (EAI) segment, EBITDA rose $102m versus the third quarter 2012 to $204m. Olefin results improved by approximately $70m due to both higher margins and volumes, while polyolefin results increased by approximately $20m primarily as a result of improved margins, LyondellBasell added.

"Overall, we continued a pattern of steady results seen in recent quarters. Underlying this performance were safe, reliable operations coupled with the North American natural gas advantage,” Gallogly said.

"We are taking steps to further capitalise on this advantage. We are making significant progress on our expansion projects which will come online over the next two years.First up will be the fourth-quarter completion of the methanol restart project followed by our La Porte ethylene debottleneck expansion mid next year. We expect to see our growth projects completed significantly ahead of our competition and add to our strong earnings profile," he added.

Looking ahead, Gallogly said: "The fundamentals that have supported our results remained intact during October. However, we have historically seen margin compression in products such as oxyfuels in winter months and slower polyolefin sales around the holiday season."